Question

Please answer all

____   28.   Rent control is usually justified on the grounds that it protects moderate- to low-income families from the burden of rapidly rising rents and from eviction if they are unable to pay. It also prevents landlords from reaping windfalls as property values rise. Opponents note that rent controls usually lead to a reduced supply of rental housing and shortages. The proponents of rent controls support them primarily on the grounds of

a.	efficiency.
b.	equality.
c.	externalities.
d.	cost disease of services.

____   33.   An optimal decision is one that is selected based on an analysis of

a.	explicit costs but not implicit costs.
b.	implicit costs but not explicit costs.
c.	both explicit costs and implicit costs.
d.	neither explicit costs nor implicit costs.

____   40.   We observe that the price of food rises and the quantity purchased also rises. This means the

a.	supply curve shifted to the left.
b.	demand curve shifted to the right.
c.	demand curve shifted to the left.
d.	supply curve shifted to the right.

Answer 1

28) option B)

Equality

Rent controls could be justified on grounds of equality,

33) option C)

Both explicit & implicit ( opportunity) costs are needed for optimal decision analysis

40) option B)

As demand curve shifts to right, both P & Q rises